An increase in the price of stamps will hit the elderly, vulnerable and millions of people who rely on the postal service, including small businesses and charities. At a time when family budgets are facing an unprecedented squeeze, the cost of living is rising and growth has been stalled...such a large rise in the price of stamps is the last thing we need. This decision is a direct result of the Government pursuing the privatisation of Royal Mail.

Billy Hayes, General Secretary of the Communication Workers Union, has blamed today's stamp price hike on the forthcoming privatisation of the Royal Mail Group. He said:

It's an announcement for business not consumers, with vulnerable and low-income consumers protected by [the] second-class service price constraint. Second class tells you all you need to know. Those people who baulk at the idea of stamp price rises should understand that it comes directly from Government decisions to privatise this industry - just as we've seen massive price increases in train travel under privatisation. Commercial freedoms may be good for the company but it could come at the cost of affordability and access to services for many.

The privatisation of the Royal Mail Group will most likely take place in the first quarter of 2014, with a stock flotation being the main preference, its Chief Executive has told Reuters.

Idon't think that it is impossible that we could be in a deal mode in 2013, butpersonally I think it is probably more likely to be the first quarter in2014. My preference and I believe thegovernment's preference is a float.